Pricer (PRIC) Q1 2025 earnings summary

Executive summary

• Q1 net sales and order intake declined significantly due to macroeconomic uncertainty and cautious customer investment, with growth in Canada and Benelux but notable weakness in France.

• Transformation phase completed, with a strategic focus on expanding SaaS (Plaza), launching new products (Avenue), and increasing investments in growth markets like the U.K., North America, and southern Europe.

• Restructuring in France and a shift to direct sales in the Nordics and Baltics aim to improve profitability and gross margin.

• Macroeconomic uncertainty and FX volatility, especially USD/SEK, impacted results, with SEK -16.4M in negative currency effects.

• Strategic partnerships and product launches, including Pricer Avenue and collaboration with Focal Systems, support digitalization and innovation.

Financial highlights

• Q1 2025 net sales: SEK 528.3M, down 21.1% from Q1 2024; order intake dropped 52.9% to SEK 457.3M.

• Gross margin improved to 23.3% from 19.1% year-over-year.

• EBIT margin at 2.4% in Q1 2025; operating profit SEK 12.8M, down from SEK 21.4M in Q1 2024.

• Net loss for Q1 2025: SEK -5.9M, compared to net profit of SEK 15.1M in Q1 2024; EPS SEK -0.04.

• Cash flow from operating activities rose to SEK 141.9M, driven by reduced working capital.

Outlook and guidance

• Market expected to grow 15% annually until 2030, but current global ESL market growth was below 5% in 2024.

• Investment delays and market uncertainty are expected to persist through 2025, but long-term digitalization prospects remain positive.

• Pilots for new product concepts, including Pricer Avenue, are planned for H2 2025, with commercialization by year-end.

• Revenue from large tier-one retailer rollouts in the U.K. likely in 2026.

• Positive outlook for Canada, Benelux, Nordics, and Baltics; U.S. investments to support mid- to long-term growth.